Gladstone Investment Corporation Announces Sale of 395,825 Additional Shares of Common Stock Pursuant to Exercise of

 Gladstone Investment Corporation Announces Sale of 395,825 Additional Shares
 of Common Stock Pursuant to Exercise of Underwriter's Over-Allotment Option

PR Newswire

MCLEAN, Va., Nov. 6, 2012

MCLEAN, Va., Nov. 6, 2012 /PRNewswire/ --Gladstone Investment Corporation
(NASDAQ: GAIN) (the "Company") today announced that, in connection with the
offering of its common stock, par value $0.001 per share (the "Common Stock"),
completed on October 5, 2012, the underwriters have purchased an additional
395,825 shares of Common Stock by exercising a portion of their over-allotment
option.The Company received approximately $2.8 million in additional net
proceeds from the sale of these shares, after deducting the underwriting
discount. Jefferies & Company, Inc. served as the sole book-running manager
for the offering. Janney Montgomery Scott LLC served as joint lead manager
and J.J.B. Hilliard, W.L. Lyons, LLC, Ladenburg Thalmann & Co. Inc. and
Wunderlich Securities, Inc. served as co-managers for this offering.

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The Company intends to use the net proceeds from the sale of these additional
shares to repay existing short-term debt under its revolving credit facility
and then to make investments in small- and mid-sized businesses in accordance
with its investment objectives and strategies, with any remaining proceeds to
be used for general corporate purposes.

To obtain a copy of the prospectus and the final prospectus supplement for
this offering, please contact: Jefferies & Company, Inc., 520 Madison Avenue,
New York, NY 10022, Attention: Equity Syndicate Prospectus Department or (877)
547-6340 or

This communication shall not constitute an offer to sell or the solicitation
of an offer to buy nor shall there be any sale of these securities in any
state or other jurisdiction in which such offer, solicitation or sale would be
unlawful prior to registration or qualification under the securities laws of
any such state or other jurisdiction.

Gladstone Investment Corporation is a publicly traded business development
company that seeks to make debt and equity investments in small and mid-sized
businesses in the United States in connection with acquisitions, changes in
control and recapitalizations. The Company has paid 88 consecutive monthly
cash distributions on its common stock, in addition to a bonus dividend paid
on its Common Stock in March 2012. Information on the business activities of
all the Gladstone funds can be found at

SOURCE Gladstone Investment Corporation

Contact: Investor Relations, +1-703-287-5893
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